Al-Kharaj: Journal of Islamic Economic and Business
Vol. 7 No. 2 (2025): All articles in this issue include authors from 3 countries of origin (Indonesi

The Influence of Entrepreneurial Orientation and Innovation on the Performance of MSMEs in Indonesia: A Case Study of Generation Z MSMEs

Balya, Muhammad Rafi Raihan (Unknown)
Yuldinawati, Lia (Unknown)



Article Info

Publish Date
14 Jul 2025

Abstract

This study aims to investigate the influence of entrepreneurial orientation and innovation on the performance of Micro, Small, and Medium Enterprises (MSMEs) operated by Generation Z in Indonesia. Using a quantitative approach, data were collected through a structured questionnaire distributed to 400 young MSME owners across various regions. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that entrepreneurial orientation significantly and positively affects both innovation and business performance, while innovation also has a significant positive impact on performance. These results highlight the importance of fostering entrepreneurial behavior and innovation capabilities to enhance the competitiveness of Generation Z entrepreneurs. The study offers practical implications for policymakers, educators, and support institutions to strengthen youth-led MSMEs in the digital economy.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...